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Tales from
the Startup
Karri Saarinen, March 3, 2010
NESU Spring Conference Vaasa 2010
#nesuvaasa
If you twitter about this talk


http://bit.ly/nesu-karri
Slides + all links
1   The Process
    case: Flowdock



2   The Start
    case: ArcticStartup



3   Before The Start
    What to do?
?
Who is this dude?
6
                   developer
    years             designer
    of web stuff
                   entrepreneur
Now



Product Manager /   Product / Customer /
   Co-founder       Business Developer
Now

...And I study Business Management
         at University of Vaasa

Product Manager /   Product / Customer /
   Co-founder       Business Developer
Introduction;


What is a
Startup?
startup:
1. a new organization or
business venture
Really,
a startup:
Rather recent
Product business
High growth potential
High risk / reward
Chapter 1;

The

Process
case: Flowdock
Belief;


1   You need a great idea
    to start a business
The first idea of
Flowdock:
Time tracking for
the enterprise
Fortunately we didn’t
go there. Instead...
Tales From The Startup
Tales From The Startup
Flowdock,
The best group
messenger
Ideas change, it’s ok.
People & execution
matter more
Belief;


2    You need to do a
     business plan
We didn’t write a
business plan.
We contacted
customers.
Business plans are not
real. People are.
Get out of the building!
“Plans are worthless, but
planning is everything.”
But nothing beats facts.
Belief;


3   You need to know a lot
    about your business
For a startup
everything is unknown.
Just deal with it
Product =
Problem + Solution
unknown   unknown   startup
known     known     enterprise
Traditional method:
How Products Are Made
Concept /   Product       Alpha / Beta   Launch /
Idea        Development   Test           Ship
Traditional method:
How Products Are Made
Concept /   Product       Alpha / Beta   Launch /
Idea        Development   Test           Ship



Where are the customers?
Traditional Product Development:
 The Waterfall
          Requirements
                  Specification

Problem: known            Design
Solution: known         Implementation
                                 Verification
                                     Maintenance
Traditional Product Development:
 The Waterfall
                           m
                               on
          Requirements
                                   th
                  Specification        s   or
Problem: known            Design
                                               ye
Solution: known         Implementation           ar
                                 Verification
                                                    s
                                      Maintenance
Traditional Product Development:
 The Waterfall
                          Pa
         Requirements          th
If...           Specification        to
                                         Fa
Problem: unknown        Design
                                           ilu
Solution: unknown     Implementation          re
                               Verification
                                    Maintenance
How To Deal Better
With The Unknown

Problem
(What your product will solve)
Steve Blank
Customer Development
Customer Development



Customers   Customers   Customers
Customer Discovery:
State your hypotheses
Test “Problem”
Test “Product”
Verify: Iterate or Exit
How To Deal Better
With The Unknown

Solution
(How you solve the problem)
We practice

Agile / Scrum
                 2 weeks

Plan               Do         Release
 Hypotheses     Daily 15min   Have something
 Insights        meetings     that works
 User stories

                  Iterate
Problem + Solution
Traditional Product Development:
 The Waterfall
          Requirements
                  Specification

Problem: known            Design
Solution: known         Implementation
                                 Verification
                                     Maintenance
Lean Startup Product Development
                     Customer Development




Hypotheses            Problem: unknown          Data
Experiments                                     Feedback
                      Solution: unknown
Insights                                        Insights


              Plan           Do           Release
                            Iterate
Where is Flowdock now?

500+ groups created
   7 days to public beta
Ideas change

You don’t need a business plan.
You need customers.

Embrace the unknown
Chapter 2;


The Start
case: ArcticStartup
2007
Started a blog about startups
& growth entrepreneurship in
the Northern Europe
2007-2009
4 guys
No journalist background
No business model
No money
Working on nights & weekends
What there was:
People
Passion
Opportunity
2010
2 guys employed full-time
Well known brand
Profitable
Advertising, Events, Consulting,
Product
What Do You Need?
People.
It’s easier with co-founders.

Find something you’re passionate
about. Mostly forget money.

Start something.
Figure it out as you go.
People.
Choosing a co-founder is more
like choosing a wife / husband.
It’s nice to have complimentary
skills but the relationship is more
important.
Start.
Start something or join a startup.
As a student you have advantages:
Spare time, low costs of living, no-
one cares if you fail, minimal
commitments
Chapter 3;


Before
The Start
What to do?
Meet with founders /
go to events
ArcticEvenings (Nordics)
www.arcticstartup.com/arctic-evenings
More Nordic events: www.arcticindex.com/events

Aalto Entrepreneurship Society (Finland)
www.aaltoes.com

Open Coffee (World-wide)
Google: open coffee

Local events, conferences
Read Online
ArcticStartup
www.arcticstartup.com

Hacker News
news.ycombinator.com

Mixergy (Videos with founders)
www.mixergy.com

Paul Graham Essays
www.paulgraham.com
Read Books




Crush it!   The Monk and   The Art of
             The Riddle    The Start
Thanks.
email: karri@karrisaarinen.com
twitter: @karrisaarinen
slides + links: http://bit.ly/nesu-karri
flowdock.com / arcticstartup.com

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